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HRS §490:8-502

When a buyer of financial assets is protected from ownership disputes

This section protects someone who buys a financial asset and gets a security entitlement for value without knowing about another person's claim to it. Such a buyer cannot be sued for ownership disputes, no matter the legal theory. It only applies if the buyer acted in good faith and paid value.

buyersfinancial institutions

The statute, as written — Assertion of adverse claim against entitlement holder

An action based on an adverse claim to a financial asset, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a person who acquires a security entitlement under section 490:8-501 for value and without notice of the adverse claim.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

Sections this one refers to

§490:8-501 When you get a security entitlement from a securities intermediary

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.